Gender may be linked to new venture entrepreneurial outcomes, according to the authors of a new study released by the Office of Advocacy of the U.S. Small Business Administration. The study empirically examines the influence demographic and psychographic variables have on new venture performance measures.
The authors find that when controlling for factors typically influencing entrepreneurial performance, gender does not affect new venture performance. However, differing expectations, reasons for starting a business, motivations, opportunities sought, and types of businesses started vary by gender and those differences result in differing outcomes. In essence, men are not inherently better owners, they have different business goals.
"It's not surprising that the data show entrepreneurs vary in their motivations and reasons for starting a business," said Dr. Chad Moutray, Chief Economist for the Office of Advocacy. "Small businesses and small business owners are unique, and that has important implications for policymakers as they debate issues affecting small business."
Previous research has shown women-owned firms lagging male-owned firms on such business performance measures as average annual sales. However, a full understanding of the reasons for the differences has been lacking. The current study, Are Male and Female Entrepreneurs Really That Different?, analyzes a dataset of business startups in 1998 and 1999 to study the linkage between the gender of entrepreneurs and their firms' development.
The report was co-authored by Erin Kepler, and Dr. Scott Shane, Professor of Entrepreneurial Studies at Case Western Reserve University, and was funded by the Office of Advocacy.
The Office of Advocacy, the "small business watchdog" of the federal government, examines the role and status of small business in the economy and independently represents the views of small business to federal agencies, Congress, and the President. It is the source for small business statistics presented in user-friendly formats, and it funds research into small business issues.
For more information and a complete copy of the report, visit the Office of Advocacy website at www.sba.gov/advo.
Washington - September 14, 2007
Release Number: 07-29 ADVO
Contact: John McDowell, (202) 205-6941,
john.mcdowell@sba.gov
Information courtesy of the Small Business Administration.
